I asked a few people recently, “What’s the most confusing or frustrating financial activity you deal with?” Something that came up repeatedly surprised me a little bit: calculating the investment performance on their portfolios. After I thought about it, I realized that it wasn’t all that surprising; I’ve just become numb to the fact that it’s a frustrating problem to solve properly.
Some of the hurdles to getting it right:
- Tracking performance across multiple accounts, possibly at multiple institutions.
- Handling deposits and/or withdrawals; cash flows tend to skew simplistic calculations.
- Handling dividend reinvestment, which is sort of a special-case cash flow.
I’m going to build an app that gets it right. But I need your help to make sure I’m really solving the right problem. Please answer this really short, five question survey about portfolio performance tracking.
To follow along as the app develops, sign up for the mailing list.
Pierre at http://accumity.com/
PS: This post is a guest post by Brian, any questions and suggestions should be directed directly to him through the provided contact information. Your Little Avdisor.